Cost-Recovery Scheme for Renewable Energy Investors

The government intends to employ a contract scheme similar to the oil and gas contract, the cost-recovery system, for the development of renewable energy, especially in the geothermal sector. Such a system can expectedly attract more investors to fund the projects in the industry.

The Energy and Mineral Resources Minister, Arifin Tasrif, argued that all this time, the regulatory formulas offered by the government on the development of renewable energy were not appealing enough. As a result, his team is now formulating a new regulation that is attractive enough for incoming investors and can encourage them to conduct a high-risk business similar to the oil and gas business.